SHORT SUPPLY CHAIN WHOLESALE

Fruit and vegetable wholesalers report a continued growing interest in both local and organic produce, and for most types of produce demand outstrips supply. Many existing box schemes and shops across the country are also in need of extra produce to supplement their own and can be further potential wholesale customers.

Wholesale can bring opportunities for producers to specialise in certain crops or products that can be produced profitably in their situation and will allow refinement of the production process and economies of scale in production. However, it will place different demands on your business. You’ll need timely delivery, accurate forecasting of crop maturity and volume, and consistency in quality. If you’re a beginning farmer, it’s advised to gain experience before selling to a wholesaler; individual consumers are reportedly more forgiving in your beginning learning years than a busy wholesaler.

It's also advised that you consider keeping your most profitable, convenient and/or enjoyable direct market sales, and add wholesale into your business once your farm hits a certain size or you feel is able to meet the demands of wholesale buyers.

The LWA supports a model of producers connecting with buyers and distributors in urban areas through cooperative models that can combine the volume of wholesale buyers with reliable relationships and low risks. A good example of this is the Better Food Shed in London.

The Resources section of this Guide provides contact details of existing organic wholesalers in the UK.

Unicorn Grocery have shared their internal guidance for buying in fresh fruit and vegetables, including from small-scale UK growers here: https://www.unicorn-grocery.coop/wp-content/uploads/documents/Veg-Trading.pdf

There is a comprehensive guide to selling into wholesale, providing guidance on: approaching wholesalers; setting prices; crop planning; and more, available from FamilyFarmed.org in the United States: Wholesale Success: A Farmer’s Guide to Selling, Postharvest Handling and Packing Produce

Advantages

 * Access to an established customer base in a market where there is strong and growing demand.
 * Streamlined storage, packaging and transportation needs.
 * Simplified sales process.
 * Possibly reduced staff time that otherwise would be needed packing individual vegetable boxes, staffing farmers markets, etc.
 * Wholesalers are more capable of absorbing peak production and excess volume than direct retail markets.
 * Easier to create time for holidays and time away from the farm than year round sales models

Disadvantages

 * Gross income per acre is generally lower.
 * Wholesale buyers usually only purchase a limited number of crops per farm.
 * Wholesale buyers usually demand higher standards in postharvest handling and storage practices which can require greater investment in on-farm cooling and storage.
 * Payment may take longer than individual customers.
 * Little direct contact with your customers.